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A range plan for retailers is a strategic document that outlines the products a retailer plans to offer over a certain period, typically a season.
A range plan for retailers is a strategic document that outlines the products a retailer plans to offer over a certain period, typically a season. It includes details such as the assortment of products, pricing, planned inventory levels, and the timing of product introductions and markdowns. The range plan is designed to ensure that the product offering aligns with the retailer's target market, sales goals, and overall business strategy.
Calculating a range plan involves analyzing past sales data, current market trends, and inventory levels to determine the optimal mix of products. It also includes forecasting future demand to decide on the quantities of each product to stock.
For retailers, a range plan is important because:
- It helps in aligning the product offering with customer demand and preferences.
- It assists in managing inventory levels effectively, reducing the risk of overstocking or stockouts.
- It aids in financial planning by projecting potential sales and profits.
- It provides a roadmap for buying and merchandising decisions.
A well-crafted range plan can be a critical tool for maximizing sales and profitability while ensuring that customers find the products they want.